<Anchor> When the
merger and acquisition is complete, Asiana Airlines, which was created in 1988, will disappear and Korea's major airlines will be united as one.
Jin Air, Air Seoul, and Air Busan, which were subsidiaries of the two companies, are also planning to merge in stages. In that case, Korean Air will become the only large domestic airline with a market share of over 62%.
At this news, consumers had previously been able to choose between the two, but now they are curious about whether the price of the plane will rise further or how the mileage will be, and the employees of the two companies are most concerned about whether my job will continue right away.
Reporter Jeon Hyung-woo pointed out this part.
<Reporter> At the
moment, Asiana Airlines employees were worried about the restructuring.
This is because most of the routes operated by Asiana Airlines overlap with Korean Air, and the number of redundant personnel centered on management positions is estimated to be up to 1,000.
[Asiana Airlines employee: (with Korean Air) there are too many overlaps.
People who know (the aviation industry) better than anyone else live.
I don’t think your employment is stable…
government and Korea Development Bank are in a position that there is no artificial restructuring and can be relocated to new service sectors, but there are still concerns about the possibility of a new pioneer route, etc., with no signs of revitalizing air demand.
This is why the two airline unions that met in an emergency have declared'no takeover'.
Consumers are also concerned that monopoly is intensifying due to the consolidation of the two major airlines.
As competition disappears, it is possible that fares will rise or less expensive routes.
[Citizen: I'm worried.
As price competition decreases, I think prices can rise.] The
Ministry of Land, Infrastructure and Transport explained that it is difficult to raise fares significantly as the market share of foreign airlines has already reached 30%.
There is also a view that the value of Asiana Airlines mileage will be undervalued based on the mileage accrual rate of the amount used by the credit card.
If you withdraw from the global airline alliance or Star Alliance to which Asiana has joined after the two companies merge, there may be restrictions on mileage alliance services.
The mileage valuation and integration plan for the two airlines will be developed over time.
(Video coverage: Jang Woon-seok, video editing: So Ji-hye)
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